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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 5

Q1 | Following is used as tool for Cost Control
  • Marginal cost
  • Historical cost
  • Standard cost
  • All of the above
Q2 | Management accounting assists the management
  • Only in control
  • Only in direction
  • Only in planning
  • In planning, direction and control
Q3 | Management accounting is deals with -
  • Quantitative Information
  • Qualitative Information
  • Both (a) and (b)
  • None of the above
Q4 | Which of the following is an advantage of standard costing?
  • Measuring efficiency
  • Facilitates cost control
  • Determination of variance
  • All of the above
Q5 | Which of the following is not a functional budget?
  • Labour budget
  • Cash budget
  • Materials budget
  • Expenses budget
Q6 | Which is the mostly likely purpose of budgeting?
  • Planning and control of an organization's income and expenditure
  • Preparation of a five-year business plan
  • Company valuation
  • Assess the non-financial performance of an organization
Q7 | __________ Accounting becomes a source of information for Management Accounting.
  • Financial
  • Cost
  • Both (a) and (b)
  • None of the above
Q8 | Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units.
  • 80,058 units
  • 1,46,370 units
  • 32,320 units
  • 98,642 units
Q9 | Fixed budget is useless for comparison when the level of activity -
  • Increases
  • Fluctuates both ways
  • Decreases
  • Constant
Q10 | The budget committee consists of -
  • Managers
  • Budget officers
  • Creditors
  • None of the above
Q11 | A budget centre is -
  • Department or part of the department
  • Meeting place for budget committee
  • Office of the budget officer
  • None of the above
Q12 | The main objective of budgetary control is -
  • To define the goal of the firm
  • To coordinate different departments
  • To plan to achieve its goals
  • All of the above
Q13 | Production budget is -
  • Dependent on purchase budget
  • Dependent on sales budget
  • Dependent on cash budget
  • None of the above
Q14 | Sales budget shows the sales details as -
  • Month wise
  • Product wise
  • Area wise
  • All of the above
Q15 | An example of long period budget is -
  • R & D budget
  • Master budget
  • Sales budget
  • Personnel budget
Q16 | The budgets are classified on the basis of -
  • Time
  • Function
  • Flexibility
  • All of the above
Q17 | Budget relating to the key factor is prepared -
  • After other budgets
  • With other budgets
  • Before other budgets
  • None of the above
Q18 | Key factor is also known as -
  • Limiting factor
  • Governing factor
  • Principal factor
  • All of the above
Q19 | In responsibility accounting system -
  • Budgets are prepared
  • Actual performance is recorded
  • The performance is reported
  • All of the above
Q20 | The responsibility accounting emphasizes the performance of -
  • System
  • Men
  • Both (a) and (b)
  • None of these
Q21 | The responsibility accounting is also called -
  • Profitability accounting
  • Activity accounting
  • Both (a) and (b)
  • None of these
Q22 | The responsibility accounting is the part of -
  • Financial accounting
  • Management accounting
  • Mechanized accounting
  • None of these
Q23 | The responsibility accounting is a controlling tool for -
  • Top?level management
  • Lower level management
  • Middle level management
  • None of these
Q24 | Which of the following system emphasizes on cost control ?
  • Cost accounting
  • Responsibility accounting
  • Financial accounting
  • None of these
Q25 | The responsibility centres come under the responsibility of -
  • Cost accountants
  • Management accountant
  • Responsibility managers
  • Auditor